Binance CEO Voices Concern Over Lack of Clarity in Crypto Regulations

Changpeng Zhao, founder, and CEO of Binance, the largest cryptocurrency exchange in the world, has called for clear regulations in the crypto industry.

Speaking at the Web3 Festival in Hong Kong, Zhao said that having no regulatory clarity is the worst and that having bad restrictive regulations is better than having unclear ones that lead to enforcement actions.

Zhao emphasized that regulators need to understand the nuances of crypto and that the industry is different from the traditional financial industry. He added that there is a natural tendency to borrow traditional financial regulations and apply them to crypto, but that approach is not suitable.

Zhao’s comments came after the Commodities Futures Trading Commission filed a lawsuit against Binance and Zhao, alleging that the company violated derivatives rules by allowing U.S. residents to trade various financial instruments involving digital assets without licensing approval.

The Binance CEO’s call for clear regulations in the crypto industry highlights the ongoing struggle between regulators and crypto companies worldwide. Earlier this year, China cracked down on crypto mining and trading, leading to the closure of several mining farms and exchanges. Other countries are also grappling with how to regulate the industry, and Zhao’s comments reflect the frustration felt by many in the crypto space.

In another blow to Binance, the Australian Securities and Investments Commission recently canceled Binance Australia’s derivatives license, a day after the exchange requested the cancellation. The move comes as regulators worldwide increase their scrutiny of crypto exchanges and trading platforms.